Have you ever wondered how international trade takes place despite language barriers? Apart from language barriers, the monetary system and currency of every country are different. A lot of paperwork is required when you deal with international businesses. International trade has become possible in this globalization era because of professional translation companies. For dealing in business globally, one of the important translation services that you require is financial translation. These services will help you know how much money you are earning. While going for international business, you must know whether tapping into foreign markets is worth it or not. Before going for financial translation, you must know what this service is about.
What is Financial Translation?
Financial translation is required in every business that is dealing on a global level. If you want to tap into foreign markets then you have to make a feasibility report in which you can check how profitable the current market is. Moreover in case if you want to apply for a loan then financial translation services can help you understand the laws and regulations of the banks in a foreign country. These translation services keep your business going. It includes documents translated into other languages according to their currency. Financial translation is required in every business irrespective of industry.
Some examples of financial translation are
- Global Business: Balance sheets, annual reports, and shareholder summaries.
- Bootstrappers: Financial analysis, investment portfolios, cash flow statements, and income statements.
- Investment: Bonds, equities, prospects, and reports for local markets.
- Manufacturers: Contracts and order sheets, staff contracts, and market reports.
- Real estate: Insurance policies, financial protection, income statements, contracts, and listings.
- Tax & accountancy: National tax regulations, tax reports, audits, expense reports, income statements, and other documents.
- Insurance: Financial reports, regulatory documentation, and terms and conditions.
How to Overcome the Challenges in Financial Translation?
We are living in a fast-paced world. Global transactions take place rapidly so entrepreneurs and businessmen have no time to indulge in communication barriers. Financial translation is very dynamic. Any error in this field can turn profits into losses. Therefore, it is very important to know the challenges faced in this field.
Localization is Must
Localization is very important in financial translation. This is because the monetary system and local culture of every country are different. The important thing to consider is the use of financial terminologies used in specific markets. For example, in financial statements in the UK, they write creditors whereas, in the USA, they write accounts payable.
In addition, it is imperative to consider the currency of the unit, and variations in writing numerics in financial documents. Any change in commas in numeric values can change the entire interpretation.
Quick Turnaround Time
The other challenge in financial translation is considering the quick turnaround time. This is because business owners have to make timely decisions for investments. They require monthly, quarterly, and yearly financial reports on time. If they don’t get the financial translation on time then they will not be able to make investment decisions for business and it will benefit their competitors.
Financial documents contain sensitive business information. For example, insurance documents, income statements, bank loan information, and audits. Therefore, it is essential to hire a professional translation agency that has signed an NDA, a non-disclosure agreement. It is the document that is signed by the employees and the company that says that they will not leak any information.
Accuracy is paramount in financial translation, especially when dealing with terminologies and numerics. If the financial translation is not accurate. It can lead your business to bankruptcy.
Tips to Get Accurate Financial Translation
Doing financial translation is not a piece of cake. It depends on attention to detail. Let’s have a look at tips for getting an accurate financial translation.
Hire a Professional Translation Agency
Many professional agencies are working around the world. Each translation agency has its specialty. Some agencies are good at producing legal translations and some are good at providing financial translations. Do the complete research. Read the reviews of satisfied customers then hire a professional translation agency.
The professional translation agencies give the translation project to the subject-matter-expert of the financial field and to the translator who has handled similar financial projects before.
Know the Requirements of the Client
If you are looking for freelance services then look for a translator that has an idea for which purpose financial documents will be used. A competent translator knows the requirements of the client and translates the financial document keeping in view the tone that matches the original document.
Give Attention to Detail to Regional Differences
After knowing the client’s requirements, it is also important to consider regional differences. Here localization services come to play. Localization services ensure that translated documents are easy to understand for the client and nothing is misinterpreted. For precise and accurate translation results, you can also give the financial terminologies that are used in your market.
Stay Up to Date with Monetary Policies
The financial sector keeps on evolving because every year monetary policies of different countries change. It also affects the currency change rates. Therefore, you must hire a translator who keeps himself abreast of financial policies.
Translation services are required in every department of an organization. Global companies take the assistance of marketing translation services to advertise their products and services in foreign markets. For each department, the CFO allocates the budget. Here again, financial translation plays a significant role in the allocation of money. In short, without financial translation, you cannot successfully run your business. Therefore, you must know the challenges of financial translation and tips to overcome them.